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Global House Price Index Q2 2020 Ranks India At 54th Spot

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The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics.

Knight Frank, a leading international property consultancy, in its latest research report – Global House Price Index Q2 2020 has ranked India at the 54th spot amongst the 56 countries and territories tracked, in terms of appreciation in residential real estate prices, with a decline of 1.9% year-on-year (YoY) in home prices. As compared to Q1 2020, India moves down 11 spots in the global index, from 43rd rank to 54th rank in Q2 2020.

The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. In the 12-month percentage change for the period Q2 2019 – Q2 2020, Turkey led the annual rankings with prices up 25.7% YoY, followed by Luxembourg at 13.9% YoY and Lithuania with 12.4% YoY. Hong Kong was the weakest-performing territory in Q2 2020, with home prices fallen to 2.8% YoY.

Knight Frank Prime Global House Price Index Q2 2020

Ranked by annual % change

RankCountry/Territory12-Month % Change(Q2 2019-Q2 2020)6-Month  % Change(Q4 2019-Q2 2020) 3-Month % Change(Q1 2020-Q2 2020)
1Turkey25.7%17.4%11.2%
2Luxembourg *13.9%6.0%3.8%
3Lithuania*12.4%-1.6%-6.6%
4Estonia*11.5%7.8%4.8 %
5Poland*11.3%6.6%3.6%
6Slovakia 11.2%8.4%3.6%
7Ukraine 11.2%2.4%0.0%
8Czech Republic*9.5%4.7%2.6%
9Latvia*9.1%1.2%1.1%
10Croatia*9.1%5.7%2.7%
54India -1.9%-2.3%-1.6%
56Hong Kong-2.8%0.6%1.6%

Source: Knight Frank Research | 1 Data for Belgium, Bulgaria, Chile, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Israel, Italy, Japan, Latvia, Luxembourg, Poland, Romania, Slovenia, Spain, Sweden, Taiwan, United Kingdom and United States is to Q1 2020.

Mainstream residential prices across 56 countries and territories worldwide rose at an annual rate change of 4.7% on average, compared to Q1 2020 at 4.4%. According to the report, 9% of the surveyed global countries and territories registered a decline in a yearly price growth; European countries occupy eight of the top 10 rankings in Q2 2020, which provides representations from the Baltic and Central and Eastern European nations as well. 

From the Asia Pacific region perspective: New Zealand and South Korea, which were initially seen to have effectively handled the pandemic, have registered mixed results. New Zealand slumped from second to 11th place in the rankings between March and June.  However, the country recorded an annual price growth of 9%, making it the top-performing market of Asia Pacific region.  South Korea, where annual price growth was weak at 0.1% in Q1 2020, has seen an annual price growth pick up to 1.3% in Q2 2020.  

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The residential sector has been impacted by low demand across most markets in India. Further, the slowdown due to the pandemic in the global economy has adversely affected the real estate sector and the purchasing power of homebuyers. Whilst a lot will depend on when the economy opens up completely, the current softening of prices can be beneficial for the end users to make their purchase decisions. Further, lower home loan interest rate, can provide the right motivation for house purchase.” 

Key Findings of Global House Price Index Q2 2020:

· Turkey leads the annual rankings with prices appreciation up 25% year-on-year. However, it is essential to note that inflation in the country is currently around 12%

· European countries occupy eight of the top 10 rankings in Q2 2020

· India stands at 54th globally, in-home price appreciation in Q2 2020

· Average annual change in price across 56 countries and territories stood at 4.7%

What to watch out for in Q3 2020:

· Any sign of a correlation between the length and stringency of lockdowns and price-performance

· If reporting rates by national statistics offices improve as national lockdowns reduce in number or if indices are halted due to a lack of transactions

· If markets reliant on tourism and with a high proportion of second homes register weaker price growth

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